NBP curve prices have reacted strongly this morning to reports of an attack on to gas storage sites in Ukraine by Russia.

11 April 2024

Gas Market 

NBP gas prices traded in a tight range for much of the day as contracts ebbed and flowed from gain to loss for much of the session. The front month contract opened in positive territory trading up to 69.96p/th and what proved to be the high of the day, before trading down to the low of 66.65p/th just after midday. The contract for delivery in May eventually closed at 67.37p/th. The Asgard gas field returned to full operation with the Langeled pipeline returning to close to full capacity helping to alleviate some of the upward pressure, while another unplanned outage at the Barrow treatment plant stemmed the losses. A minor slide just prior to the close saw the majority of NBP curve contracts close below Tuesday’s assessment, but in reality, the market moved sideways. On the far curve it was a similar pattern to the front month as Winter-24 closed up down a mere 0.10p/th at 85.22p/th.  

Power Market

Movement on the GB baseload curve was varied on Wednesday with minimal trading on the power market. Near curve contracts were pressured by the dip on NBP gas market, while some far curve contracts were assessed higher at the close. Day ahead baseload contracts however continue to outperform the front month, trading at a £10.88/MWh discount at present in April so far. Wind generation is forecast to be 20% above seasonal norms for the rest of the week, while solar generation is also expected to increase. The carbon EUA market declined at the close having traded higher following the Polish biweekly auctions earlier in the day. The Dec-24 contract closed at €62.85/tonne a decline of €1.13 from Tuesday.  

Oil Market

Crude oil markets moved seesawed close to Tuesday’s close on Wednesday as contracts were caught between the push and pull of an increase in US crude inventories and a deadlock in Gaza ceasefire talks. Brent crude for delivery in June increased by $1.06 to $90.48/bbl. US crude stock increased by 3.03 million according to initial figures from the American Petroleum Institute, with stockpiles increasing by more than traders had anticipated. Lending support to prices is the uncertainty in the Middle East with Hamas stating that the Israeli ceasefire proposal falls short of their demands, but it would consider the proposal further before delivering its verdict. If the conflict continues the risk of other nations becoming involved, particularly Iran, rises and the impact on oil supplies a risk to the market.  

Markets this morning

NBP curve prices have reacted strongly to reports of an attack on to gas storage sites in Ukraine by Russia. The front month has since fallen from earlier highs, but it has retained over 3p/th premium compared to yesterday’s close. EUA carbon prices have tracked the European price movements higher and are currently trading at a €2.40 premium to the previous sessions close. An increase in tensions in the Middle East has seen crude oil prices increase this morning following comments from Iran’s supreme leader that Israel will be punished for attacks on the Iranian embassy in Syria at the beginning of the month.